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2024 ACH Rule Amendments Summary

Knowledge Center

    2024 ACH Rule Amendments Summary

    Dear Valued Customer,
     
    As part of our commitment to keeping our ACH origination customers informed of ACH rule changes, we are providing you the following summary of upcoming changes to the Nacha Operating Rules (“Rules”). The rules below are intended to improve Risk Management in the Network for all parties, and your organization may not be directly affected by some or all of these changes.
     

    1. Minor Rules Topics

      Effective June 21, 2024
       
      Details

      • Originators will now have the discretion to make changes when they receive a Notification of Change (“NOC”) of any single entry.
      • The Rules will clearly state Originators are allowed to use prenotifications to revalidate accounts, even if they have already transmitted entries to the Receiver’s account

       
      Impact
      These rule changes will have little or no impact on your organization.

     

    1. Origination Fraud Monitoring

      Effective June 19, 2026
       
      Summary
      This rule will require all parties on the origination side of entries to have risk-based processes to identify fraudulently originated ACH entries.
       
      Details
      The Rules do not currently require Originators to have fraud monitoring processes. This rule will have requirements for all entries with the goal of detecting and preventing fraud from scams such as business email compromise and fake invoices.
       
      Impact
      Originators may already have processes such as anomaly detection or other “flags” that detect and prevent fraudulent entries. Each organization will need to review its processes and procedures to determine if it needs to make updates to meet these new requirements.

     

    1. Company Entry Descriptions

      Effective March 20, 2026
       
      Summary
      The Rules will require specific company entry descriptions for payroll entries and online purchases of goods.
       
      Details
      Originators will be required to use the description “PAYROLL” for PPD credits to pay wages, salaries, and other compensation.
       
      Originator and Third-Party Sender Impact
      Originators will need to review the company entry descriptions they use in ACH files and ensure they update these descriptions as required by the Rules. These standardized descriptions will help improve processes to monitor entries for potential fraud. Originators can begin using this description anytime but must comply with the requirements by the implementation date March 20, 2026.

     
    Sincerely,
     
    CalPrivate Bank
    Treasury Management
    Phone (844) 282-7372

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